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GNU Cash: Stock Spinoff cost basis.

It turns this is a bitch to get right in GNUCash and it didn’t work for me until I used real dollars. I had 300 shares of WMB at a cost basis $22.216 They did a 1 for 3 spin off. For every 3 shares of WMB you get 1 share of WPX. Oddly enough for my 300 shares I got 99 of WPX shares instead of the 100 shares that might 1 for 3 means. I didn’t get any fractional share or cash. Class Action Land Sharks will be circling if many shareholders wake up. I’m missing $4.00

GNUCash doesn’t have a spin-off transaction. After a few attempts of too much thinking I realized that my $6664.80 purchase cost should be split 75% (WMB) and 25% (WPX). Then you divide those dollar amounts by the shares of each, 300 and 99 for me. There are many ways to do this wrong in GNU cash. I chose to set up an new equity account, “WPX spinoff”. Then in the WMB account I sold 300 shares of WMB at my 22.216 basis to the spinoff account. Then I bought (transferred) 300 of them with the new basis of $16.662/shr from the Spinoff account and in the new WPX asset account I bought 99 shares from that transfer account at $16.7899 leaving me with a 4.00 error and cost basis that make sense to me. Perhaps $4.00 got lost in the rounding and floating point fun. I suspect not. Integer number errors is a cause for worry.

So the spinoff equity account is out of balance by $4.00. I chose to move the $4 into the WMB expenses account. If you don’t track expenses and income by account and investment, then you’ll need a “slop” expense account. At the end of the day, accounts balance, there are no weird transactions in the investment account and I can find my cost basis for the IRS when I sell either of these brilliant investments (soon). $4.00 is a fair price to lose if I never their see their 10-k’s again. It’ll cost me $14.xy to sell both so the lost $4 just blends into the background. Some people might pursue the $4. Probably won’t be me and that’s kind of sad. I don’t want dig into something suspicious because my return will be low.

Posted in Investing.


About the world governance. Part 2

In part 1 I discussed the human desire for individual/local/world peace by following authority.

It didn’t take me long to google up the history of the global governance players. I’m an investor so I know there is a World Bank and an International Monetary Fund (IMF). There is the World Trade Organization. There is the World Court. There is the World Health Organization and the World Meteorological Organization and whole lot of World claimers I’ve haven’t looked at. And then their is the UN and the G20.

The G20 (previously the G7, G8,… is concerned about world finance and banking and the members meet for blissfully short one or two days a year and then go home after agrees to attempt to implement the good ideas and ignore the ones they don’t like. The World Bank appear to be about encouraging lending in or to less developed countries and the IMF is called in to pistol whip the finance ministers in countries that borrow to much or need help with that NPV() function in their spreadsheets. G20, WB, and the IMF are not UN entities. Turns out the World Trade Organization is not a UN creature either. I haven’t looked at the World Court. I suspect it’s not a UN org.

Think about it. Why would governments not put the UN in charge of global finance and trade? Is that not a slap in the face of UN bureaucrats, a line in the sand. You can not go there, UN. You can diplomat speak and debate amongst yourselves with great gnashing of teeth but you can’t touch the real money. The UN Security Council can override all decisions (assuming they both agree or sustain) How humiliating for the would-be leaders of the world? Living off the handouts of the member nations and yet every important world decision is not theirs to make.

The UN does “own” the WHO. I can’t say whether they’ve done good or bad. Every once in a while the UN blue helmet peace keepers are dispatched. I’m not aware of any lasting positive outcome from their deployment but maybe disaster was averted. I’m aware of some ugly call them rumors, incidents where the peace keeper brought more disaster. I think there are disaster relief programs that the UN sort of leads after the developed world countries dispatch their ships and planes filled with food and doctors. The parade is well started before the UN shows up to jump in front.

We know of some UN scandals like “oil for food” but it takes auditors to uncover the graft and the UN can’t manage it’s accountants and bookkeepers in anything resembling honest accounting.

What is a hopeful to govern world bureaucracy to do with so much incompetence and disrepsect? They need something world wide to Tax. That way their incompetence can be sustained with depending on handouts. The UN has attempted to claim control of the Seas and ocean transport. Maybe the Blue Helmets could deal with the Somali pirates first, just to show they have the chops. How well is that working? You may be aware that the UN and EU (UN light) have floated proposals for taxing internal financial money flows. The UN has received a chilly reaction to those power grabs.

What the UN really, really wants is to tax is air by deciding what molecules should be in the world’s air. Gain control of the Carbon (dioxide) in the air and there by control the fuel supply. That would be Endless Money for the UN bureaucrats. Brilliant!

Back in the 70′s when scientists were fretting and media exaggerating fears of “ice age” the UN found a few scientists to claim, no the world wasn’t going to the deep freezer, it was headed for “Anthropogenic Global Warming” (AGW), now called Climate Change after some media re-branding when it didn’t warm as predicted) They even convinced climate scientists to gather and assess the state of the climate science and by front loading the choice of scientists and ignoring dissent in their own ranks they produce IPCC reports about consensus of scientists that the world is headed to thermarmageddon unless the UN is allowed to control your energy. Sadly the EU and member nations signed up to save the world first. Australia went second. The IPCC reports are being used to direct US policy via another bureaucracy with not enough oversight for the executive or legislative branches, the EPA.

What we have is a turf fight among the world’s leading NGO (non governmental organizations) for the prime spot at the money feeding trough of the farmers that are scared of the pigs in their yard but feed them to keep them quiet. That’s not going work. Already the pigs are fighting amongst themselves and the UN is the fat, slow sow with just enough milk left that the other NGO won’t kill her. Yet. Her time approaches. She’s old and nearly useless She knows she the feed trough is not endless but maybe she can save her piglets.

Posted in ClimateGate.

Tagged with , .


About the world governance. Part 1

I suspect all of what I write below is not new or unknown or unreported. It might not be appreciated properly and international affairs is not my expertise. Then again we should all have and opinion and a voice.

As a US citizen, age 61, I grew up with the science fiction dreams and TV dramas and movies about a world government. Star Treks’ Federation and Klingon Empire. Substitute the Star Wars versions if that is your age group. Those are literary devices and without them the story would proceed without drama or conflict. It’s a staple of all science fiction. Earth is one happy orb until something happens. It might be Winston Smith or one of Phillip K. Dick’s characters learning they are doomed to the box (or not understanding the box boundaries). It might be messages from space or space ships from beyond that cause the world to react. Can we have status quo without some trouble makers? I don’t know of fiction follows politics or leads it. I suspect both.

With that background, how are we doing on the world governance front? I got into this from what I read and heard about the UN IPCC and the claims that the world needed to unite and voluntarily go back to the fossil fuel free agrarian society of the middle ages. Extraordinary claims need extraordinary evidence. Hearing Jesus or Valis in your head is not evidence nor has prayer been an effective solution.

There are people who elevate scientists to replace the priests and shamans. Science may replace religion someday as the predominate belief system. That won’t be anytime soon. Scientists have all the human failings. Some percentage of them are pedophiles. Some percentage are con men and rent seekers and psychopaths — If it’s good for me, you will do what I want.

Scientists claim to be self correcting. As the Vatican did with way ward priests. If you wait long enough, all the bad ones get sorted out and no new bad scientists or priests will appear ever again. There are many parallels to scientific societies and universities (councils of this and that and and hierarchy of bishops). My point is that you can’t trust a group of scientists any farther than you can trust a group of bishops. To be fair occasionally rogue scientists will point out that the Church of Science has some problems

I was going to talk about global governance and all I did was set up the background and side track myself.

Posted in ClimateGate.

Tagged with , , , .


Hambone broth and leftover ham

I bought a half ham for Christmas, the butt end as opposed to the shank end. Mega mart store brand (Albertsons, aka SVU) instead of my annual disappointment with Cooks brand. I really can’t prove that one brand tastes less chemically enhanced than the other because the only smokehouse either saw was on the side of the road as their refrigerated tracker-trailer passed by at 60mph. I’m not complaining. Cheap ham is what it is and no amount of fancy glaze will make it less cheap ass for more than the first bite.

That whine does not mean we should not purchase, cook and use cheap ass ham. I learned today that the little indoor George Foreman grill is actually a cheap ass paninni press ($20 new, but check the garage sales and thrift markets if you threw yours away) is quite effective. Heats fast, makes squished grill makes on fresh bread and heats the ham and cheese to the melting stage sooner than I thought. Yes, you could get all cast iron grill pan and foiled wrapped bricks in some sort of Cooks Illustrated purity test for perfection. I’ll bet your waffle iron will turn a nice grilled cheese and ham sandwich too.

I managed to carve off whole chunks of ham that can be sliced and frozen with some smaller muscles pieces for chopping and using for omelets, or flavor enhancements in a pot of beans. The ham bone of a butt or shank cut will still have bits of meat, fat, and gunk plus the bone. I’m making ham bone broth. I’m using Ruhlmans spooky method for poultry stock. Put the bones in pot, cover with water, bring to a boil and put it in a low oven (180F to 200F) for a whole lot of hours (overnight and more). Too hot for the toxin bacteria to live and it doesn’t evaporate much since if doesn’t boil and the bone and muscle bits remaining stuff should mostly get covert to ham gelatins heavy stock for use in cooking beans.

It’s only an experiment. The bone was headed for the landfill and simmered or not, it still is. If I can extract the chemically enhanced ham goodness I can use it bean recipes.

[Next Day]
The broth looked like water with a few fat pools on top. It didn’t really smell like the distilled essence of ham. Homeopaths would add gallons and gallons of water to improve its ham effectiveness. Cooks would reduce it, throw it away or just use as is. I made a pot of beans but I added a whole lot of seasonings. The beans are tasty but I can’t really say that the ham bone broth added anything that simple water wouldn’t have done.

In recipes with lots of strong ingredients, only a very talented taster could pick out the contribution of ham bone broth vs water. Why bother?

Posted in Cooking.


The hole punch

Back in the old days, when vinyl records had to be sold at a discount they would punch a hole in the album cover so you couldn’t bring it back and a full price refund. Yes, it was a barbarous practice. This album sells so badly they punched the cover.

But for a dollar of two, you could take a chance and sometimes you’d find an artist or album that was good in ways that didn’t make sense then. One of them was Townes Van Zandt’s “For the sake of the song”. Looking back through time it was my gateway to all the Texas country song writers and singers. I didn’t know it then but Townes a was bulldozer influence on music.

I still have the album with the hole punched out of the corner but I never got around to digitizing it because that’s hard to do properly. Townes died a few years ago so It would be doubly improper to find a bit-torrent of 320kbs encoded albums that sound better than my album. You might have to clean up the metadata (or not) to import it into a music play library which is also hard, so don’t do that at home.

Posted in Misc.


The hole punch

Back in the old days, when vinyl records had to be sold at a discount they would punch a hole in the album cover so you couldn’t bring it back and a full price refund. Yes, it was a barbarous practice. This album sells so badly they punched the cover.

But for a dollar of two, you could take a chance and sometimes you’d find an artist or album that was good in ways that didn’t make sense then. One of them was Townes Van Zandt’s “For the sake of the song”. Looking back through time it was my gateway to all the Texas country song writers and singers. I didn’t know it then but Townes a was bulldozer influence on music.

I still have the album with the hole punched out of the corner but I never got around to digitizing it because that’s hard to do properly. Townes died a few years ago so It would be doubly improper to find a bit-torrent of 320kbs encoded albums that sound better than my album. You might have to clean up the metadata (or not) to import it into a music play library which is also hard, so don’t do that at home.

Posted in Misc.


The beat goes on

I’ve been a long suffering shareholder of Williams Company (WMB). I’m talking about 15 years back when the dividend was really good and the stock split several times. And then the dividend went to not good and the price plunged. Some I sold for tax loss reasons and I kept some. Recently it’s price is nicely over my cost basis so I’ve ridden it up, down and sideways.

Williams is (was) a Natural Gas company of sorts. The parent company back then held MLP, LLC, joint ventures for exploration, pipes, extraction, storage, wholesale sales, all interlocked in a capital structure that makes the annual report 200 pages long – only Citigroup’s (C) annual report was more opaque.

Over the years they’ve been trying to clean up that mess, maybe sort of. Earlier this year they announced they would spin off the exploration biz into a new company to you know unlock shareholder value and yada yada. The market did move the price up and I decided to wait to see the unlocked value that will gush into my account after the spin-off occurs.

Today (12/19/11) I received the spin off details and the 200 page report of the proforma 10-K of the new company (WPX). One share of WPX for 3 shares of WMB to holders of WMB on 12/15/201, to occur on 12/31/11. Four days past actionable! Gee thanks for notifying me sooner. I could have found out more sooner so I’m not entirely blameless.

That means I’m in the When Issued period. Lets look at WPX.WI . Looks like some people wanted out of WPX although you have to wonder about those folks that bought. It’s a fascinating read through capital structure and asset description in the 10k, until you can’t read any more.

I don’t know what the price of WMB and WPX will be on 1/2/2012 but I’m guessing unlocked value is a long ways away. We’ll see what the new year delivers.

Posted in Investing.


Cue the trumpets!

No the Higgs boson hasn’t been found. The US 3 month T-Bill, if purchased on Dec 15, 2011 would provide the owner with negative yield! They paid more than it can be redeemed for. Congratulations to the Bond Traders who hope to sell it to someone who is willing to pay up for even more negative yield.

It’s troubling to me because I can’t think of any reasons why this could be a good thing. I’m not privy to the trading volume numbers so I don’t know if its a few million dollars in some hedge fund strategy or the Sultan of Brunei moving $Billions from Italy (say) to Tbills for a few weeks at any cost.

[A few hours later, I read this This bit of joy. If the author is correct and their links support their analysis that was written a week earlier, it might be a problem.]

I wonder if I should Panicâ„¢ ? It’s probably nothing. [h/t to SDA]

Posted in Investing.


Gravy, gravy, gravy

I am not an expert on gravy. But, I do like gravy and I have a lot of dressing and turkey, this Thanksgiving. I’ve also made some good and some eh? gravy and I’m not completely incompetent. From Serious Eats is a Cooks Illustrated all purpose Gravy. As you know, CI recipes don’t impress me much because they use hard to find ingredients or it makes more than a single person with two freezers can handle who it costs a whole lot of money to follow them slavishly.

The recipe linked to above is a decent starting point with the benefit that I don’t have to link to the CI article. (CI canceled my online account when the print subscription expired). Oddly enough I don’t have 2 Cup’s of beef broth in my pantry and another 2C of chicken broth to make 3C of gravy. That’s a lot of gravy and money.

I do have 2C of so-so home made chicken stock (not broth – the terminology matters) and I have all the other ingredients except the beef broth. So I made 1.5 cups of gravy from what I had, halving the recipe in some places.

1) The mini-chopper for your hand help stick blender works fine. No need to haul out the big machine.

2) It’s not a lot of veg to be browned and roux’ed so use a smaller pot and adjust temperature settings down to match your pot and stove. Soften & caramelize the veg. I chose to add more butter. Add the flour and up the heat a tiny bit until the flour is cooked enough. Half the time of the recipe. Slowly whisk in the chicken broth and simmer until the the consistency is right for you. (may take 10 minutes) I added half a bay leaf and half the thyme. I tasted it and it wasn’t bad but nothing to share. Added some Salt and Pepper. Better but missing something. I added 1 TBL of Soy. Now I have something that doesn’t suck. I should have added a dash of cayenne pepper or a drop of sirracha.

Sigh or Joy? After it cooled down and set up a bit in the fridge I tasted it. It’s really pretty good. Kind of like real good. Damn you Cooks Illustrated!

Posted in Cooking.


Gut dump 2.0

Another batch of pre-2009 climate researchers’ emails were released into the blogosphere and of course everyone with a keyboard, an opinion or an agenda is blogging about it along with handwaving “nothing to see here, please move along” along with the conspiracy fans aided by arm chair psychologists. There is something to those analyses but which one is correct? More importantly, which one is useful if we seek find the truth?

Most people don’t seek for truth. They seek for evidence of the truth they want to believe. It’s what humans do. Scientists who study the practice of science call it confirmation bias. Politics is all about who or how many believe their confirmation bias is stronger that their opponents incoherent lunatic rantings.

In theory, the rigorous practice of science will find the truth. I’m willing to believe that could be true. It’s not pretty, no, not pretty at all. I can’t prove Bigfoot doesn’t exist. I can’t prove your God of choice doesn’t exist. If I did believe it could be Satan clouding my mind. How would I know for sure? I can’t and you can’t. Science make predictions that are verified by new observations or debunked those observations.

I’ve not seen good evidence that the Flying Spaghetti Monster exists or for the Hindu pantheon, Buddha, Yahweh, Jesus, Mohamed, or an intelligent designer. No evidence of paranormal powers or paranormal anything. Prayer and ritual are just emotional practices to keep the faithful confirmation bias in place. It’s not evil, it’s just human.

Some practitioners of science elevate science into an emotional belief system — their religion to defend, and convert the unbelievers to. I’ve been guilty of that.

With release of the first batch of ClimateGate emails two years ago, science faithfuls got an “In your face” example of how science can get religious and unseemly. Like the Catholic church, with the abuse allegations, the bulk of the scientific faithful still trust and defend their belief system. The phrase “Boy’s being boys”comes to mind and to the pit of the stomach. Now we have another batch of emails showing the the faithful was more anti-science that the first batch of emails showed. It’s like one more sex abuse scandal in the Catholic church. Oh, nothing to see, that was long ago and it’s all good now, only good priests in the church now.

Apologies for all the double meanings you might find find in this post (they are many and intentional).

Posted in ClimateGate.